Old Mutual Money Market Fund Kenya Explained [2024]

Launched on 24^th March 2003, Old Mutual Money Market Fund Kenya enjoys an estimated fund size of Ksh 5.97 Billion (as of 31^st August 2022), making it one of the biggest money market funds in Kenya.

The fund promises immediate liquidity, capital stability, interest compounding, and low-risk instruments, among other highlights that investors look for in an investment opportunity.

Though the Old Mutual Market Fund is barely two decades old, it continues to enjoy a massive claim in the Kenyan money market sector.

As of 9^th December 2022, the fund had an effective annual yield of 9.2%, which ranks it position 11 overall, according to a recent Cytonn Report. The money market funds leading the chase are Cytonn (10.7%), Zimele (9.9%), and NCBA (9.8%), in that order.

Perhaps Old Mutual has some catching up to do, but as you can tell, the difference between Old Mutual and the ones leading the pack is slender, which gives the impression that the Old Mutual money market fund is doing pretty well.

Old Mutual majorly invests in fixed deposits, whose asset allocation percentage as of 31^st August 2022 was 77.5%. Overall, there’s so much to learn about the Old Mutual money market fund, which I’ll share.

Here are the issues I’ll discuss in this post:

• What is the Old Mutual money market fund?
• How does the Old Mutual money market fund work?
• Who should invest in the Old Mutual money market fund?
• Why invest in the Old Mutual money market fund?
• What are the downsides of the Old Mutual money market fund?
• How to open an Old Mutual money market fund account?
• How do I deposit funds into an Old Mutual money market fund account?
• And how do I withdraw from the Old Mutual money market fund?

In a hurry? Below is an Old Mutual Money Market Fund Fact Sheet as of 31st August 2022.

Old Mutual Kenya Money Market Fund Fact Sheet

Launch Date	24th March 2003
Fund Size	Ksh 5.97 Billion
Number of Units	5.9 Billion
Fund Manager	Old Mutual Investment Group (K)
Custodian	KCB Bank Kenya
Trustee	KCB Bank Kenya
Auditor	PricewaterhouseCoopers
Minimum Investment	Ksh 1,000
Minimum Top-up	Ksh 1,000
Annual Effective Yield	9.38%
Initial Fee	Nil
Annual Maintenance Fee	1% + VAT
Withholding Tax	15%
Risk Profile	Low/conservative
Minimum Withdrawal	Ksh 480

What Is Old Mutual Money Market Fund Kenya?

The Old Mutual money market fund is a unit trust by Old Mutual that invests in a low-risk well-diversified investment portfolio featuring short-term securities like fixed deposits, treasury bills, bank-call deposits, and corporate notes.

This fund was launched on 24^th March 2003 and is worth Ksh 5.97 Billion (as of 31^st August 2022), equivalent to 5.9 billion units.

How Does the Old Mutual Money Market Fund Work?

As a unit trust, the Old Mutual money market fund is managed by a CMA-approved (Capital Markets Authority-approved) fund manager (Old Mutual Investment Group Kenya). The fund manager develops the investment portfolio on behalf of the members or unit holders.

The fund manager, however, doesn’t work alone. For instance, the fund manager doesn’t keep the funds. That’s the work of the CMA-approved custodian (KCB Bank).

The fund manager is under the trustee’s oversight (KCB Bank). The trustee’s job is to ensure the fund manager doesn’t engage in financial malpractice.

And lastly, there is the auditor (PricewaterhouseCoopers). The auditor’s job is to examine the fund’s financials, write reports, and advise the fund manager accordingly.

As a unit holder, each unit you hold represents Ksh 1. The minimum investment deposit is Ksh 1,000, and an equal top-up limit.

The effective annual yield as of 31^st August 2022 was 9.38% and 9.2% as of 31^st December 2022. The interest earned is subject to a standard 15% withholding tax, and the fund charges a 1% + VAT annual maintenance fee.

Who Should Invest in Old Mutual Money Market Fund?

The Old Mutual money market is generally best for two sets of people; the investor and the saver.

When it comes to the investor, it can be anyone looking to kickstart their investment journey but is too careful not to take a considerable risk. It could also be a corporate looking to grow its capital without putting too much at stake.

And when it comes to the saver, it could be someone looking to build an emergency fund, or save up for a family or staff welfare, a mortgage deposit, or business startup capital. Such people see money market funds as better options than savings accounts because they are low-risk and high-interest-bearing.

What are the Advantages of Old Mutual Money Market Fund Kenya?

Joining the Old Mutual Money Market Fund has several benefits, and here are the most notable ones:

• Immediate liquidity – Once processed, the funds are paid the next day, provided it’s a working day.
• Decent yield – Though the effective annual yield rate is never constant, the fluctuation has been minimal in recent years. And with the Old Mutual money market fund interest rate averaging 9.38+ lately, it’s pretty decent.
• Safety – The fund manager invests in low-risk securities to protect the investors’ money. Moreover, the fund manager and the unit trust are CMA-approved and thus safe.
• Comfortable investment limit – The minimum investment limit is Ksh 1,000, which most Kenyans can afford.
• Interest compounding – Money market funds generally allow you to earn additional interest on the interest earned, which you get from Old Mutual.
• Cash flow – By investing in Old Mutual, you can withdraw cash from the interest earned at the end of the month to cater to your day-to-day needs.
• Capital stability – Though you can never count out inflation, the Old Mutual money market fund has been doing well in recent years despite the high cost of living.
• Low withdrawal limit – Old Mutual allows you to withdraw a minimum of Ksh 480, which is low and comfortable for most people.
• Saving culture – Whether you want to save up for a land deposit, mortgage, emergency fund, or family welfare, you can do it via the Old Mutual money market fund by saving regularly. It becomes a savings culture.

What are the Downsides of Old Mutual Money Market Fund?

Like every other money market fund in Kenya, the Old Mutual money market fund has a few concerns as follows:

• Withdrawal and top-up limits – Old Mutual expects you to make a minimum top-up of Ksh 1,000, and you only withdraw a minimum of Ksh 480. That’s unlike ICEA and Zimele money market funds, with no minimum withdrawal limit. Besides, Old Mutual also has a withdrawal limit which you don’t get on most money market funds.
• Yield unpredictability – Just because Old Mutual has been doing fine, even against inflation, doesn’t mean it’ll stay that way. All money market funds are unpredictable, and you can’t tell that you’ll always enjoy higher yields.

How Do I Join Old Mutual Money Market Fund Kenya?

You can sign up for the Old Mutual money market fund in Kenya using any of these ways:

a) USSD Code *480#

Follow these steps:

• Dial *480# on your mobile and enter your details (ID/passport no., occupation, among others)
• Accept the terms and wait to receive a one-time pin (OTP) via SMS
• Dial *480# once again and enter and reset your PIN
• Dial *480# once again to indicate the source of the funds and pay the minimum deposit
• Follow the subsequent steps to complete the sign-up

b) Facebook Messenger

You can also chat with the Old Mutual virtual assistant via Facebook Messenger and request help to set up a money market fund.

How to Deposit Money into Your Old Mutual Money Market Fund Account?

Old Mutual allows you to deposit funds using any of these routes:

• Old Mutual money market fund paybill number 600500, where the account name is the Unit Trust member’s number
• Kenya Commercial Bank; Custody Service Branch; Account no. 1102369705
• Other means – include standing orders and direct debit

How to Withdraw Funds from Old Mutual Money Market Fund? 

Old Mutual allows you to withdraw funds using these options:

• USSD code *480# – Dial the USSD code and follow the relevant steps to make the withdrawal
• Direct debit form – Ask for a direct debit form from Old Mutual and fill it out to request the withdrawal

Old Mutual Contacts

• Head Offices – UAP Old Mutual Tower, Upper Hill
• Telephone – 0711 065 000/ 0711 010 000
• Box No. – 11589 – 00400
• Email – clientservices@oldmutualkenya.com

People Also Ask

1. But Can I Withdraw Money from My Old Mutual Investment?

Yes, Old Mutual allows you to withdraw funds from your Unit Trust account via the USSD *480# or by filling out a direct debit form. The minimum withdrawal amount, however, is Ksh 480.

2. How Do You Earn in Money Market Fund?

Money market funds earn interest which is compounded daily. Therefore, you can withdraw your earnings anytime, which means you can have regular cash flow.

3. How Much Do I Need for A Money Market Account?

You need a minimum deposit of Ksh 1,000 – Ksh 2,000 to open a money market fund account. However, some money market funds require you to deposit as little as Ksh 100, as in the case of the Zimele Money Market Fund. After that, you can make top-ups of any amount.

Closing Remarks:

Discussed is everything to know about Old Mutual Money Market Fund Kenya. You can therefore use the review to decide if Old Mutual is worth pursuing as your next money market investment option.

Perhaps you want some clarification on Old Mutual money market fund or any other? If so, then talk to us on social media. Our Cent Warrior team is always happy to help other Kenyans make the right investment calls.

Meanwhile, check out our free personal finance guide to help you kickstart your journey to financial freedom.